Designing a model for assessing the resilience of small and medium-sized industries

EXTENDED ABSTRACT
 
Introduction: In today's turbulent and highly competitive world, organizations face numerous challenges such as economic crises, technological changes, market fluctuations, political risks, and environmental disasters. In such circumstances, the concept of organizational resilience has become one of the key axes in the fields of strategic management, human resources, and organizational development. Resilience not only means resistance to crises, but also includes the ability to adapt, learn, evolve, and exploit crises to improve future performance. Meanwhile, small and medium-sized enterprises (SMEs) play an indispensable role in economic growth, innovation, job creation and social dynamism. According to global reports, more than 90% of businesses in the world are SMEs and, they account for up to 70% of employment in some countries. In Iran, these companies also play an important role in achieving development goals, reducing unemployment rates and stimulating market demand. However, the vulnerable nature of these units, especially in conditions of environmental uncertainty, has put them at great risk.
Methodology: This study is developmental-applied in terms of purpose and has been conducted with a qualitative and inductive approach. Its main goal is to discover the concepts and explain the process of organizational resilience in small and medium-sized enterprises (SMEs). This study is classified as descriptive-exploratory and survey research and Grounded Theory has been used to achieve a theory based on field data.  Data were collected through library studies, semi-structured in-depth interviews, literature review, and opinions of experts in the field of management and organizational resilience. Initially, six core questions were designed based on the dimensions of data-based theory (causes, contexts, intervenors, strategies, consequences), and then the interviews were supplemented with supplementary questions to better cover the topic. The statistical population is academic and industrial experts. Sampling was purposeful and theoretical, and the snowball method was used to expand the scope of the samples. In total, 14 interviews were conducted with managers, consultants, industrial and academic experts who had at least 8 years of work experience in the field of management and organizational resilience.
Discussion and Results: In accordance with the systematic approach, the data were analyzed and the model was designed using three stages of open, axial, and selective coding. In this study, organizational resilience was determined as the central category. Structural resilience, functional resilience, and organizational capability were named as the three dimensions of organizational resilience in this study. Structural resilience includes a set of characteristics, skills, and methods, including structural flexibility, transparency and reflection, and a sense of responsibility that organizations can use to deal with changes and adverse conditions. According to the coding results, the most important factors affecting the assessment of resilience in small and medium-sized enterprises are divided into three categories: strategic leadership, prevention and intelligent management of risk and resources, and excellent coordination. Strategic leadership means the ability of leaders to formulate and implement macro and long-term strategies that help achieve organizational goals and commitments. Strategic leadership includes deciding on the overall direction of the organization, setting priorities, creating financial transparency, creating investment incentives, allocating resources, and encouraging organizational members to cooperate to achieve strategic goals. The factors that contribute to resilience in SMEs fall into two categories: skills and interactions, and strategic and policy factors. In general, skills and interactions refer to the ability of individuals to perform their duties, cooperate with each other, and create a positive organizational culture, while strategic and policy factors include internal and external factors, including the regulation of monetary and financial policies, the establishment of nationwide protective laws and regulatory policies, the simplification of property registration, the simplification of the licensing process, and similar matters that affect the performance of the organization and play an important role in making strategic decisions. Intervening factors affecting the resilience of SMEs include political and legal changes, inefficient supportive and economic environments, and institutional environments. Political and legal changes include changes in policies, laws, regulations, and government support policies that may affect the roadmaps and opportunities of companies. The strategies required to create desirable outcomes fall into four levels: community-centric, efficient and sustainable management, knowledge-based management, and crisis management. In general, robustness, productivity, and value creation are the most important outcomes of resilience in SMEs. Resilience can help SMEs become more resilient to sudden and unexpected changes, such as market shifts, regulatory changes, or cyberattacks.
Conclusion: The most important central category of the research is organizational resilience, which consists of three dimensions: structural resilience, operational resilience, and organizational capability. In the structural resilience dimension, the organization must have a flexible and adaptable structure in order to be able to act in the face of rapid developments and changes. The organizational structure must be changeable and improveable and have the ability to adapt to different conditions. In the operational resilience dimension, the organization must be able to manage its operations effectively and optimally in critical and adverse conditions. Proper planning, the use of appropriate technologies, and the empowerment of employees to manage critical situations are important factors in operational resilience, and in the organizational capability dimension, the organization must be able to adapt to changes and developments in its industry and continuously consider improvement and development. This includes the ability to recognize and exploit new opportunities, the ability to attract and retain expert talents, and innovation. For example, one solution to increase the structural resilience of companies is to improve management processes and organizational structure. A company can use advanced human resource management systems and project management software to improve. To increase operational resilience, companies can use improving their production and supply chain processes as a solution. For example, a company may use new manufacturing technologies, recyclable raw materials, or flexible supply networks to increase its operational resilience. Finally, to increase organizational capability, companies may use improving their internal and external communication processes as a solution.